The consequences of the Russia-Ukraine war and expected aggressive interest rate increases to contain soaring inflation could keep the stock market volatile, at least in the near term. In addition, fears about deepening supply chain disruptions due to the fourth COVID-19 wave in China are fueling the market's volatility.
Amid this environment, investing in high dividend-yielding stocks could be a good strategy for generating a steady income stream. Investors' interest in the high dividend-yielding stocks is evident in the SPDR Portfolio S&P 500 High Dividend ETF's (SPYD) 13.5% returns over the past three months.
Therefore, we think one should consider investing in high-yield stocks OneMain Holdings, Inc. (OMF), Artisan Partners Asset Management Inc. (APAM), and Vector Group Ltd. (VGR). These stocks’ current price slumps offer good entry points.
OneMain Holdings, Inc. (OMF)
OMF in Evansville, Ind., is a financial service holding company that does business in consumer finance and insurance. The company originates, underwrites, and services personal loans that secured by automobiles, other titled collateral, or unsecured. The company also provides credit insurance products that comprise life, disability, and involuntary unemployment insurance.
OMF paid a $0.95 annual dividend on Feb. 18, 2022. The company's $3.80 annual dividend yields 8% at the current price level. The stock’s four-year average dividend yield is 11.5%.
In the fourth quarter ended, Dec. 31, 2021, OMF's interest income came in at $649.00 million, while its other revenue amounted to $135.00 million. Its net income was $262.00 million, while its EPS came in at $2.02.
The consensus EPS estimate for its fiscal 2023 represents a 4.7% improvement year-over-year to $9.07. Analysts expect its revenue to increase 11.1% year-over-year to $1.02 billion for the first-quarter, ending March 31, 2022. Furthermore, it has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of the trailing four quarters. The company's shares have plunged 15.8% over the past nine months.
OMF's POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
The stock also has a B grade for Quality. Within the Consumer Financial Services Industry, it is ranked #5 of 52 stocks.
To see additional POWR Ratings for Growth, Value, Sentiment, Stability, and Momentum for OMF, click here.
Artisan Partners Asset Management Inc. (APAM)
APAM is a publicly owned investment manager. It offers services to pension and profit-sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds, and non-U.S. funds, as well as mutual funds, non-U.S. funds, and collective trusts. It manages separate client-focused equity and fixed income portfolios. APAM is headquartered in Milwaukee, Wisc.
APAM paid a $1.03 annual dividend on Feb. 28, 2022. APAM's $3.98 annual dividend yields 10.3% at the current price level. The stock’s four-year average dividend yield is 10.5%. Its dividend payouts have increased at a 10.7% CAGR over the past five years.
For the fourth quarter, ended Dec. 31, 2021, APAM's revenue increased 20.6% year-over-year to $315.00 million. Its operating income grew 21.4% year-over-year to $137.80 million, while its net income increased 15.7% from its year-ago value to $84.60 million. The company's EPS rose 8.7% from the prior-year quarter to $1.25.
The $4.67 consensus EPS estimate for its fiscal year 2023 indicates a 6.3% improvement year-over-year. APAM is expected to witness $301.29 million in revenue growth, representing a 3.7% year-over-year increase in the first quarter, ending March 31, 2022. In addition, the company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of the trailing four quarters. The stock has declined 20.9% in price over the past year.
According to the POWR Ratings, APAM has a B grade for Value and Quality. In the Asset Management industry, it is ranked #10 of 58 stocks.
To view the additional POWR ratings for APAM (Growth, Stability, Sentiment, and Momentum), click here.
Vector Group Ltd. (VGR)
VGR in Miami manufactures and sells cigarettes in the United States through its subsidiaries and has two operating segments–Tobacco and Real Estate. The company produces cigarettes in 100 combinations under the EAGLE 20’s, Pyramid, Montego, Grand Prix, Liggett Select, Eve, USA brand names, and various partner and private label brands.
VGR paid a $0.20 annual dividend on March 30, 2022. Its $0.80 annual dividend yields 7.6% at the stock’s current price level. The company’s four-year average dividend yield is 10%.
In the fourth quarter, ended Dec. 31, 2021, VGR's total revenue increased 9.2% year-over-year to $313.67 million. Its operating income amounted to $68.56 million, while its net income grew 40.5% from the prior-year quarter to $45.31 million. The company's EPS has increased 38.1% year-over-year to $0.29.
Analysts expect VGR’s revenue to increase 1.5% year-over-year to 1.24 billion for its fiscal year 2022. Furthermore, it has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.
The stock has plunged 7.7% in price year-to-date but has gained 28.6% over the past six months.
VGR's strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our POWR Ratings system. VGR is also rated B for Quality and Value. Within the B-rated Tobacco industry, it is ranked #3 of 11 stocks.
To see additional POWR Ratings for Growth, Stability, Momentum, and Sentiment for VGR, click here.
OMF shares were trading at $47.91 per share on Thursday morning, up $0.34 (+0.71%). Year-to-date, OMF has declined -2.53%, versus a -3.34% rise in the benchmark S&P 500 index during the same period.
About the Author: Spandan Khandelwal
Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing.
The post 3 Beaten-Down High-Yield Stocks to Scoop Up Now: Artisan Partners, OneMain, and Vector Group appeared first on StockNews.com